Internet business nko?
I’ll have to ask the Oracle to confirm that.
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Lool Oracle wey don sleep.
You should probably not be crucifying Konga for this. I don’t know for certain, but I reckon posts are tagged, and sellers will often do cross-pollination (for lack of a better term). Essentially, people looking to buy high-end Samsung phones will at least briefly consider buying an iPhone, and it’s not a sin for it to appear on the list.
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You are on point but they will not listen, especially Konga. A friend once told me that he proposed something like that and he was schooled about business model and why their business model is different.
I spoke to the marketing director of Wakanow who told me that they decided to also do offline sales when they discovered that over 80% of their customers prefer to finish transactions offline. That is a company that listens to its customers.
Folks running these eCommerce stores believe they know their ‘customers more than their customers’.
Let them keep playing the Ostrich
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Fair enough. But my issue with them is even when you decide to use the filters (category,price, brand) to find what you need and yet it still shows something different from what you need, then It’s mind boggling
You are hell bent on this idea, I wonder why
Probably because i read Shoprites Annual Report where it broke down earnings from Nigeria for FY 2015 and 2016 to 100 of millions of dollars, Konga cant say they dont have the money to build a Megastore where people shop ‘smartly’ , the Goodies, SPAR and co are eating out of their Marketshare, our almighty go to model for Ecommerce Amazon has Physical shops and not only them Target and others, we in Nigeria play in a predominantly offline market that will take 5-10 years to get us truly internet savvy( education, broadband penetration, smartphone penetration, buying power of income earners, use of platform) to change buying behaviour, Konga’s major competition are the mega malls and big supermarkets and they keep expanding and though they dont have ways to track visitor and leg traffic i can bet you that more than 200,000 people visit them monthly thats the current active numbers of Konga as reported by Kinnevick, so the point simply is the company must realise its an Online Shop that leverages on technology, so the current buying behaviour must be taken and adapted.
Amazon launched the Amazon Go concept, order online and pick up in a shop next to you or have it delivered in same day or next day turn around times they have invested massiely in real estate, warehouses, fulfillment and distribution centres, fleet and fleet technology.
We may argue that they have billions with them but hey so do Konga, the extra money to be saved from putting up 40 billboards in 1 state alone multiplied by 10 million naira/quarter for some location gives them enough cash to acquire Real Estate and build That Megastore and stock up and compete but hey if its deemed too distasteful to bear then let them carry on, theres been a flat growth rate of 5% YoY that should worry anyone…Kinnevik still remains one of the best partners we have in the continent who have put their money where their mouth is, in Retail you have to be brutal almost Autocratic to win Marketshare…the Walmarts can give you an idea but thats for another day.
I wish them well and see a very different opportunity and approach that would work, if an experiment or strategy doesnt work you try another…there are 19 traction models as at last count which have they been using and owning eh?.
That is not to say the Management is sleeping but it requires a radical shift but are they ready or too comfortable? time will tell.
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Lol…This is very untrue.
- You have no accurate data of gmv that happens on Instagram.
GMV on Jumia Mall alone is mad!
Do you know what GMV really is?
For the gmv generated on Instagram be higher than that of Jumia alone, there has to be at least 30k transactions daily. That doesn’t happen my friend.
Going by your argument, as of December 2016, Instagram had reached 600 million monthly active users. Jumia + Konga has no chance what so ever.
To put things in the right perspective, just 1% of that number is 6 million
Uh…
Try to compare wisely.
If you are using Jumia and Konga, then your sample size should be limited to Nigerians on Instagram. If it is not, then compare Instagram GMV with that of all Ecommerce companies in the world.
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Bro, I’m so sorry. 
E-Commerce in America is still less than 20% of the total and America has a long history of shopping from mail order catalogs even before online. But thats just an aside, E-commerce is a different animal than physical retail.
E-commerce is supposed to strip out certain physical costs such as physical retail space (which at around $1000 per square meter in most Nigerian malls is significant), cost of cashiers, cleaners, lighting, air conditioning, the cost of scaling (to reach the 20 million or so monied consumers across Nigeria would require lots of stores country-wide at least 100 stocked with the same 250,000 items on Konga’s site), and the cost of holding inventory (ecommerce allows less need to hold lots of inventory). E-commerce provides benefits which regular physical retail doesnt such as data on every individual customer purchases which can be used for consumer analysis and to tailor delivery systems.
If you look at ecommerce as a different category of retail then you realize that Konga and Jumia are not Shoprite nor Goodies nor Spar. They are an e-commerce retailer and irrespective of all the criticisms they have carved out a niche for themselves. Fact is demand is there for e-commerce in Nigeria and 10-20 million dollars in sales per year and hundreds of thousands of customers is nothing to sneeze at even if they were packed to the hilt with VC money.
So the model is different and the issue for Jumia and Konga is whether they have successfullly built the back-end systems to actually make e-commerce profitable in the tough Nigerian environment. We can see how Amazon struggled even in a US with established delivery infrastructure (postcodes, low cost of delivery to the home, cheap energy).
30k transactions happening daily on Jumia is huge.
Please, can you provide source of this info?
What is their margin on those transactions, 100 naira, 500 naira, 1000 naira?
What is the cost of running their business? What expense takes up most of their revenue, salary, marketing?
With some estimates and calculations, it seems like there is money to be made but the company is not being properly managed.
You think se na beans to setup shopping mall? You keep talking about shoprite, let me remind you that shoprite doesn’t own the malls.
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Not quite the best example to use mate. Amazon Go is still a young concept and the motive behind it isn’t even to have Amazon stores everywhere. Ask Nordstrom, Macy’s and H&M how well the trend of physical stores are doing in the US today? They’ve closed so many stores. H&M last week finally closed all stores to focus on their online presence.
The goal of Amazon Go, like Amazon Web Services, is to license the technology to companies like Walmart, Target, Best Buy and pretty much every retail outlet to for use. They’ll pay Amazon for it and Amazon can keep their feet up and watch the money roll in. They’re not actually going to start setting up multiple large stores across America. Just thought I should point that out to you.
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No bloody chance Jumia runs 30k transactions daily. If you have proof, present it.
The search function on Konga is a lazy approach to search that was vetted by a team-head who I don’t know. “Someone” it seems is too focused on creating things that no one really cares about.
How would anyone use wildcard free text search for a site that has products with similar names in totally different categories?
Then the funky acrobatics their endless scroll causes the page to do, while slowing down the browser with huge memory loads.
My greatest concern with e-commerce as a whole in Nigeria is the fact that “What you see” about half the time is not “what you get”. They need to reduce that stat. So rather than wait a whole week to get something I would reject why not just visit a shop where I can see what I want and bargain for it if I feel like?
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LOL 30k daily transactions yeah roight, I know for a fact that Jumia’s daily transaction peaked at about 12k daily at some point but has since dropped to about 1,500.
Certainly, not doing 30k. In terms of matching the GMV of Jumia daily. The average AOV on Instagram is significantly lower than Jumia Mall. Most transactions on Instagram are usually fashion, sex toys and the likes. To match Jumia’s GMV, the Instagram transactions in NG have to be around 30k to even stand a chance.